TEMPO.CO, Jakarta -Manpower Minister Hanif Dhakiri has said that West Java is a province with the highest unemployment rate among other provinces in Indonesia.
“The unemployment rate in West Java is stands at 1.7 million. 60 percent of them are junior high school graduates,” Hanif said in Karawant, West Java, on Sunday, October 18, 2015.
According to Hanif, the condition is alarming, since it would be difficult for workers with lower educational backgrounds to find jobs. Therefore, the Manpower and Transmigration Ministry will craft a certification program for 350,000 workers across Indonesia.
With such a certification, Hanif hopes that companies in Indonesia would not require formal education for workers to apply for jobs.
“Formal education is very important. However, with trainings and competence certification, companies can open vacancies for both [workers with] formal education and certification,” Hanif said.
Hanif revealed that low number of business owners had also affected workers absorption.
“Local entrepreneurs only account for 1.65 percent of the total population. Whereas, local business owners can absorb labors,” he said.
According to Hanif, Indonesia is still behind other countries in terms of the number of business owners. Ideally, local business owners in a country must account for at least 4 percent of the total population.
“Malaysia, for example, has local business owners that account for 4 percent. Thailand has 7 percent,” Hanif added.
In a bid to reduce unemployment rate, the government through the fourth economic policy package set to distribute micro-loans for productive home industries.
“The assistance fund that amounts to Rp30 trillion (US$2.1 billion) will be allocated for new independent business owners in Indonesia,” Hanif sadi.